Vancouver, BC, Las Vegas, NV – April 30, 2024 (CSE: OVAT | OTCQB: OVATF) – Ovation Science Inc. (“Ovation” or the “Company”), with its proprietary topical and transdermal cannabis products powered by its patented skin delivery technology Invisicare®, today announced the official launch of its topical product line in Nevada with Planet 13 Holdings, Inc. (CSE: PLTH | OTCQX: PLNH)  (“Planet 13”). These products will be available in store, reach customers through wholesale channels and the hemp derived products will be available online, marking an exciting expansion of Planet 13’s product offerings. The cannabis derived topicals will be manufactured at the Planet 13 SuperStore in the state-of-the-art production facility where visitors can watch products being made, further enhancing the immersive customer experience that Planet 13 is renowned for. Planet 13’s 112,000 square foot SuperStore and entertainment complex is located just off The Strip in Las Vegas. Planet 13 accounts for approximately 9-percent of the cannabis retail market share for the entire state of Nevada.

“The launch of our topical products with Planet 13 in Nevada is exciting for the Company,” said Terry Howlett, President of Ovation. “Our products have always sold extremely well in Nevada; holding the position of #1 Topical for many years.”  He added, “Planet 13 has had extensive success in the past selling our topicals, but this time with the added incentive of launching the four products under their own brand. We know consumers will also be excited to see these topicals available throughout Nevada and in turn this will generate maximum revenue for Ovation and value for our shareholders.”

“We’ve experienced great success with our topical offerings both in-store and online. Introducing a MEDIZIN branded topical line perfectly aligns with our strategic goals in Nevada, allowing us to leverage our production facility to expand our brand presence and boost wholesale revenue,” explained Bob Groesbeck, Co-CEO of Planet 13. “We’re thrilled to secure the Nevada rights to Ovation Science’s patented technology and to harness the strength of our beloved MEDIZIN brand to dominate a new product category. This endeavor marks a significant stride towards optimizing our production facility, driving revenue growth, and enhancing our gross margins.”

The Planet 13 Topical Product Line Includes:

MEDIZIN REST:

3:1 Ratio – 375mg CBD & 125mg THC – A CBD-infused transdermal cream crafted to alleviate soreness and discomfort to foster relaxation for a restful night’s sleep.

MEDIZIN RECOVERY:

1:1 Ratio – 250mg CBD & 250mg THC – An ideal blend of CBD and THC to unlock the combined benefits of both cannabinoids to conjure the entourage effect

MEDIZIN RELIEF:

1:10 Ratio – 50mg CBD & 500mg THC – A THC-dominant transdermal cream designed to provide relief, complemented by CBD to balance the effects.

PLANET 13 PURE CBD:

Planet 13 PURE CBD with 400mg CBD per jar. A transdermal CBD cream designed to provide relief and promote relaxation.

Ovation leverages its expertise in the pharmaceutical industry by using its patented skin delivery technology Invisicare® in its highly effective, proprietary products. Invisicare, backed by over 20 years of research and development, enables substantially more CBD and THC and other cannabinoids to be delivered to and through the skin, which translates into better results for patients. In a recent in-house study, Ovation compared five CBD brand leaders to Ovation Science’s topical CBD cream. All competitor creams tested release less than 2% CBD compared to 40% release from Ovation Science products.

Statements have not been evaluated by the Food and Drug Administration. These products are not intended to diagnose, treat, cure, or prevent any disease.

About Planet 13

Planet 13 (https://planet13.com/investors/) is a vertically integrated cannabis company, with award-winning cultivation, production and dispensary operations across its locations in California, Nevada, Illinois, and upcoming sites in Florida. Home to the nation’s largest dispensary located just off The Strip in Las Vegas, Planet 13 continues to expand its footprint. With the recent debut of its first consumption lounge in Las Vegas, DAZED!, and the opening of its first Illinois dispensary in Waukegan, bringing unparalleled cannabis experiences to the Chicago metro area. Planet 13 holds a medical marijuana treatment center license in Florida allowing for state-wide expansion throughout the Sunshine State. Planet 13’s mission is to build a recognizable global brand known for world-class dispensary operations and innovative cannabis products. Licensed cannabis activity is legal in the states Planet 13 operates in but remains illegal under U.S. federal law. Planet 13’s shares trade on the Canadian Securities Exchange (CSE) under the symbol PLTH and are quoted on the OTCQX under the symbol PLNH.

About Ovation Science Inc.

Ovation Science Inc. and its wholly-owned subsidiary; Ovation Science USA Inc., is a research and development company that develops topical and transdermal CBD/THC and other cannabinoid products which are out-licensed and also distributed under Ovation’s own brands; ARLO CBD Beauty and InVibe® MD (“wellness” line); all powered by its patented Invisicare® skin delivery technology. Invisicare enhances the delivery of ingredients to and through the skin and is protected by patents and proprietary formulations which cannot be duplicated. With over 20 years of pharmaceutical drug delivery experience, Ovation’s management and science team have created a unique pipeline of over thirty proprietary medical / wellness topical and transdermal products along with a line of anti-aging / beauty formulas. Ovation earns revenues from royalties on licensees’ sales and the sale of Invisicare, along with revenue from its own product sales. Ovation has offices in Vancouver, Canada and Las Vegas, USA.

Stock symbols:  CSE: OVAT and OTCQB: OVATF

Websites:

CORPORATE:  www.ovationscience.com

WELLNESS: www.invibemd.com

BEAUTY: www.arlocbdbeauty.com

Forward-Looking Statements

Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management’s current estimates, beliefs, intentions and expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. In particular there is no assurance of sales and acceptance of its products in any of the state or country cited, continued sales in dispensaries or in retail markets or expansion to other states or countries. There are no guarantees of future performance or changes to regulations. Ovation Science Inc. cautions that all forward looking statements are inherently uncertain and that actual results may be affected by a number of material factors, many of which are beyond Ovation Science Inc.’s control. Accordingly, readers should not place undue reliance on the forward-looking information. Ovation disclaims any obligation to revise or update any such forward-looking information to reflect future results, events or circumstances, except as required by law.

Neither the Canadian Securities Exchange, OTC Markets nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

CORPORATE INQUIRIES:

Doreen McMorran: info@ovationscience.com  PH:  604-982-5700

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.

The nascent cannabis market in Japan has reportedly seen a massive increase in recent years. 

That is according to a newly published report by Euromonitor International, which revealed a “staggering growth in Japan’s cannabis market over the past four years.”

The market, according to the report, expanded “approximately sixfold from JPY4 billion (USD26.3 million) in 2019 to JPY24 billion (USD173.8 million) in 2023,” a surge that was “attributed to the rising demand for products offering relaxation, sleep improvement, and stress relief.”

Euromonitor International, a market research firm based in the United Kingdom, said that initial “investment and entry into the cannabis market by major Japanese companies has not been aggressive due to legal uncertainty until now, along with the negative image surrounding its use.”

That changed, the company said, in 2024, when Japan amended its “Cannabis Control Law” for the first time in more than 70 years. 

“This amendment is expected to significantly change the potential and accelerate the use of cannabidiol (CBD) in diverse fields, including medicine, health, beauty, beverages and edibles in Japan,” the company explained.

“While Euromonitor International estimates that 0.12% of the Japanese population are consumers who use illicit cannabis at least once a year, which shows a low figure compared to Western countries, Japan witnessed a surge in illegal cultivation and smuggling operations, particularly among younger generations. Despite the long-standing legal framework, the domestic illicit cannabis market in 2023 was estimated to be 2.5 times larger than the legal CBD market.”

The revision to the country’s cannabis law came in December, when Japan’s House of Councillors moved to essentially end the prohibition on medicine derived from cannabis. The amendment also ushered in new penalties for cannabis use. 

The punishment for illicit cannabis is severe, carrying a prison sentence of up to seven years.

That didn’t sit well with some Japanese lawmakers.

“What previously had no penalties will now be harshly punished, with a maximum of seven years in prison. I opposed the bill because there is a serious problem here,” Rep. Taro Yamamoto said at the time.

The change to the country’s cannabis law also allows for the cultivation of hemp, a bid to reduce Japan’s imports of the products.

According to Euromonitor International, the “momentum for regulatory change in Japan gained traction due to the relaxation of cannabis regulations in other countries, prompting the Ministry of Health, Labour and Welfare to establish an expert panel to review the Cannabis Control Law in 2021.” 

“The amendments are mainly twofold: strengthening regulations, and lifting the ban on the use of cannabis-derived medical products,” the company explained. “First, unlike CBD, which is a legal ingredient that can be imported and sold if it is produced overseas, THC, one of the main components of cannabis, will continue to be regulated as a narcotic. In addition to authorised cultivation, the sale and possession of cannabis, which have been punishable up until now, will incur stiffer penalties. Conversely, the government’s decision to permit the practical use of Epidiolex, a CBD-based antiepileptic medication, signals a significant shift in policy. Additionally, hemp cultivation, previously restricted to fiber and seed collection or specific purposes, is now authorized for medical use.”

Euromonitor International said that Japan’s “CBD market has been growing rapidly recently, but is still in its early stages.”

“CBD products remain relatively unknown to most consumers, with limited understanding and adoption,” the report said. “Concerns over product safety and regulatory compliance persist, highlighted by incidents such as illnesses linked to CBD-infused gummies containing HHCH which are reported widely in the nation in 2023, prompting tighter regulations. The revision of the Cannabis Control Law is expected to usher in clearer guidelines for CBD product sales and distribution, attracting major companies from various sectors to enter the market by 2024. Despite challenges in ensuring quality, complying with regulations, and educating consumers, CBD sales are projected to outpace the illicit cannabis market by 2026, driven by increasing health and wellness awareness among consumers seeking alternatives to traditional products like cigarettes and alcohol.”

The company said that it is a crucial time for Japan’s burgeoning cannabis market.

“The year 2023 marked a pivotal moment for cannabis in Japan, signaling a potential turning point for the country’s CBD market. Recent legal reforms have opened doors for further CBD establishment and development, with the sector gaining attention as a high-growth industry. The increasing utilization of CBD across various sectors, including health, beauty, beverages, and edibles, is expected to reshape societal perceptions of CBD and cannabis. Nonetheless, lingering concerns persist among Japanese consumers, fueled by reports of health issues linked to CBD products. Key to the market’s success will be companies’ ability to educate consumers about the benefits of CBD products, emphasizing compliance, quality control, and scientific evidence,” the report said.

A handful of CBD and cannabis companies turned out to be figments of the imagination as a con artist successfully duped investor after investor, but his conning spree has come to an end.

A California man pleaded guilty April 5 to a slew of federal criminal charges for swindling investors out of $18.4 million. He conned several investors—all as he was already completing a sentence for prior criminal charges—by inventing companies that he claimed invested in hemp farms and cannabis-infused retail products. He also claimed to run a sham bottling business for CBD-infused products. The bogus businesses turned out to quickly fall apart.

People magazine reports that Mark Roy Anderson, 69, pleaded guilty to two counts of wire fraud, according to an announcement from the U.S. Attorney’s Office, Central District of California.

Anderson took the plea agreement, and admitted to engaging in two separate schemes that swindled investors. His scheme kicked off right after he was released from federal prison while he was on home confinement and supervised release. Police say Anderson has been conning people since the 1990s but moved into the cannabis sector where there was a lot of loot to be gained.

From June 2020 to April 2021, Anderson convinced investors to fund his company Harvest Farm Group, to harvest and process hemp grown on his farm into medical-grade CBD isolate. 

“Anderson convinced investors to invest in Harvest Farm Group by falsely representing that, through the company, he owned and operated a hemp farm in Kern County,” the report reads. “He also lied that had already completed successful and profitable harvests of hemp from the farm. He also falsely said he was using his own machinery and equipment to convert the hemp into CBD isolate and Delta 8, a psychoactive substance that, like CBD isolate, could be used in consumer products ranging from olive oil to body cream.”

Anderson weaseled his way out of skeptical investors and claimed that past fraud convictions were not in fact him. When investors demanded money, Anderson falsely told them that sales of products derived from hemp grown at the farm had been delayed because of the COVID-19 pandemic.

In another scheme, which ran from April 2021 to May 2023, Anderson duped investors by soliciting money for Bio Pharma and Verta Bottling—two more sham companies—by claiming that these businesses successfully manufactured, bottled, and packaged commercial products.

Specifically, he claimed Bio Pharma manufactured and sold infused products such as CBD-infused avocado oil, olive oil, pain cream, gummies, tequila, and chili oil. Anderson also claimed that Verta Bottling manufactured and sold beverages and a variety of food products.

“Anderson falsely stated that his bottling companies owned and possessed millions of dollars’ worth of assets, including—in Bio Pharma’s case—hemp biomass, CBD isolate, CBD oil, and—in Verta Bottling’s case—manufacturing equipment and an assignable lease for a warehouse to manufacture and sell its products,” the announcement reads.

How did he do this? Anderson carefully fabricated fake legal and business documents, which included fake purchase order contracts that he claimed showed agreements with third-party companies to purchase tens of millions of dollars’ worth of products manufactured by his bottling companies. Anderson also provided victims with fake samples of products he claimed that he manufactured by his bottling companies.

Investors have been warned about bogus cannabis companies before.

In 2019, Massachusetts Secretary of the Commonwealth William Galvin issued a warning to potential cannabis industry investors to be wary of scams and unscrupulous operators after filing fraud charges against two entrepreneurs in the state. In an alert released by Galvin’s office, the secretary urged investors to approach offers for unregistered securities from unlicensed sellers with caution, noting that the cannabis industry is not monitored by federal regulators or state-chartered banks.

“No one regulator can police this marketplace,” Galvin said in the statement. “My Securities Division intends to scrutinize these offerings to proactively prevent investor harm.”

Celebrities like Tom Hanks and Sacha Baron Cohen have been targets of fake CBD or cannabis companies, sometimes in the form of fake endorsements or misuse of their likenesses. Sacha Baron Cohen’s massive $9 million lawsuit was filed against a dispensary that ran a billboard ad with his image without permission, but the actor and plaintiff have reached an agreement to drop the lawsuit.

According to court documents filed on July 12, 2021, Sacha Baron Cohen filed a $9 million lawsuit against Somerset, Massachusetts-based Solar Therapeutics, a dispensary, for running a billboard ad with his image without his permission.

Solar Therapeutics erected a billboard on an interstate highway in Massachusetts that features a picture of Baron Cohen as Borat, with his thumbs up and the words “It’s Nice!,” one of Borat’s catchphrases.

The Iowa state Senate on Tuesday approved a bill to cap the THC potency of consumable hemp products, sending the measure to the desk of Republican Governor Kim Reynolds for consideration. The legislation, House File 2605, was passed by the Senate by a vote of 31-18 after receiving approval from the Iowa House of Representatives last month.

If signed into law by the governor, the measure would amend the Iowa Hemp Act to cap the THC potency of hemp products at 4 milligrams per serving, with a maximum limit of 10 milligrams per package. The legislation also requires warning labels on hemp product packaging and sets a minimum age of 21 to purchase hemp products containing THC. Additionally, the bill adds new restrictions and sanctions related to the manufacturing, possession and sales of consumable hemp products, including penalties for businesses that sell such products without first registering with state regulators.

Republican Senator Dan Dawson, the sponsor of House File 2605, said the bill is “desperately needed regulation.”

“There has to be some type of guardrails on here,” he said, the Des Moines Register reported on Tuesday.

The senator said that the bill is needed to maintain separation between over-the-counter hemp products and those regulated by the medicinal cannabidiol (CBD) program, which was passed by state lawmakers in 2014 to legalize the possession of low-THC CBD products for medicinal purposes.

“The Iowa Hemp Act, or the program that we’re talking about here today, needs to be at a milligram usage less than our medical cannabidiol program, otherwise the lines are blurred,” argued Dawson, according to a report from online news source We Are Iowa.

“The medical cannabidiol program actually puts an individual with a doctor to get these products, that’s the biggest distinction,” added Dawson, the Capital Dispatch reported on Tuesday. “The Iowa hemp program has none of those barriers there. So if we want to protect Iowans with these products … there has to be some type of guardrails on here, to make sure that the medical cannabidiol program is the program that we can direct Iowans to when they have one of these diagnosed conditions.”

Lawmaker Warns of Bill’s ‘Unintended Consequences’

During a House debate on the bill last month, Democratic Representative John Forbes told his colleagues that he has concerns the bill will have “unintended consequences” for people who use hemp products outside of the state’s regulated cannabidiol program, including people who are using THC or CBD to help them recover from opioid addiction. 

“I think we’re not hitting the nail on the head here, when it comes to being able to help Iowans that are seeking out this as an alternative to maybe taking other prescription medications, and increasing quality of life, helping them,” Forbes said.

Forbes also noted that many CBD products come in formulations such as capsules with 2 to 4 milligrams of THC per serving. Under House Bill 2605’s provisions, such products would only be available in packages of two to five capsules, a restriction that many manufacturers would find overly burdensome. If the bill is signed into law, many consumers may find that the hemp products they are accustomed to purchasing may no longer be available in Iowa.

“It does have a major impact on, I think, the people here in the state of Iowa that sought out ways to manage their health issues,” Forbes said, according to a report from The Gazette. “A lot of the people that go to these do purchase them because they’ve been on chronic pain medications and they’re trying to reduce that.”

“This legislation will make it much more difficult for people in the state of Iowa,” he added. “They’re going to go out and buy this stuff online … they won’t have a business they can go into.”

In the upper chamber of the state legislature, Republican Senator Tom Shipley said that when he helped draft the Iowa Hemp Act in 2019, he knew that there were “some nefarious motives behind this,” including some businesses that had plans to sell products that were not covered by the law.

“We found out some people could find an angle to get around things and do things that are not good for Iowans,” Shipley said. “And I just want to stand up in support of Senator Dawson’s bill to try and close some of these loopholes that even I could figure out were coming.”

In addition to regulating hemp products that are being used by consumers therapeutically, supporters of the legislation said it is needed to help protect those who choose to use hemp recreationally. Dawson said the bill is “desperately needed regulation on this industry, to not only protect industry but also to protect the consumers who might indulge in these products.”

A recent property tax relief bill in Nebraska is seeking to create new income opportunities for the state, including a variety of sales tax exemptions. This includes adding sales taxes for products like candy and soda, as well as services such as pet care and grooming, but most importantly, adding a 100% tax to CBD and hemp products.

Legislative Bill 388 was recently passed by the Nebraska Legislature’s Revenue Committee on March 21 in a seven to 10 vote. The bill was initially introduced by Sen. Lou Ann Linehan in January, who is also the chair of the Revenue Committee. “Sales tax exemptions will be removed on pop and candy, on pet services, on advertising revenue over $1 billion dollars, increased taxes on games of skill to 20%, and lottery tickets,” Linehan wrote in an outline. “Taxes on cigarettes will increase from 63 cents to one dollar and on vaping by 20%. We are going to tax hemp and CBD at 100%. This will result in new revenue of $182 million dollars.”

Overall, Linehan estimated that this would allow approximately $560 million in property tax credit funds that would be granted to schools, providing $3,000 per student in foundational aid. It would also create $650 million in property tax relief. The outline also describes “essentials” such as electricity, natural gas, or propane, as things that should not be taxed. “We are in a time of great revenue growth,” the outline concluded. “We have the revenues to pay for this now and for the foreseeable future.”

These proposals have created a rift among Nebraskan legislators. Gov. Jim Pillen approved the committee’s work on approving the bill so it can proceed to the floor for debate. “I want to congratulate the members of the Revenue Committee on advancing historic and transformational property tax relief and reform out of committee on a 7-0 vote,” Pillen said in a statement. “Thank you for delivering once in a lifetime transformational property tax relief plan to all Nebraskans.”

Many others, such as Sen. Julie Slama, expressed shock regarding the CBD and hemp tax increase. “I’m 100% opposed to LB-388, which is the largest tax increase in Nebraska history,” Slama said.

John Gage, state director of Americans for Prosperity, criticized the bill. “There’s nothing innovative about raising taxes on Nebraskans. This bill does not solve our property tax problem and will result in a higher tax bill for hardworking families,” Gage said, according to KETV. “This is the kind of big government nonsense you expect in California, not Nebraska. Legislators will be held accountable if they choose to vote for the largest tax increase in state history.”

Platte Institute CEO Jim Vokal called LB-388 a bad tax policy. “In recent years, the legislature has repeatedly succeeded and shown the best path to lowering taxes is to constrain all sources of revenue and spending growth,” said Vokal. “Such constraints need to be imposed upon local governments. We believe that constraining state and local revenue and spending growth is the best path forward rather than raising new sales tax revenues to lower property tax revenues.”

Cannabis is illegal in Nebraska, although sales of hemp-derived cannabinoid products continue to thrive. In January, Legislature Bill 199 was introduced by Sen. Teresa Ibach which, if passed, would ban the sale, possession, and consumption of such products. “While a product could be advertised as delta-8 or delta-10, these products could—and most likely do—contain chemicals, compounds and other impurities that are not listed on the label,” Ibach explained.

Meanwhile, advocates with Nebraskans for Medical Marijuana (NMM) are hard at work collecting signatures to qualify their medical cannabis initiative for the 2024 ballot later this year. The group needs to collect signatures from 7% of voters in the state and 5% of voters in 38 of the state’s 98 counties (with approximately 125,000 raw signatures in total) by July 3.

As of March 15, NMM said on social media that it has collected more than 72,000 signatures from voters in nearly all Nebraska counties (with the exception of Grant, Keya Paha, McPherson, Sheridan, and Wheeler). NMM has attempted to get medical cannabis legalized since 2020. Back then, they only collected 14,212 signatures in three qualified counties, followed by 16,328 signatures in four counties in 2022. 

Recent polling conducted by the Neilan Strategy Group in February revealed that 70% of participants want to see medical cannabis legalization. “Nebraskans are clearly ready to legalize medical marijuana,” the Neilan Strategy Group stated.

NMM held its own poll in 2022 and found that 80% of participants said they approved of medical cannabis legalization. “Nebraskans are obviously ready to legalize medicinal cannabis,” said NMM campaign manager Crista Eggers, who explained how excited advocates are to be making so much progress this year. “We’re very excited about where we’re at. This time, we’re going to get it done or it is not going to happen,” Eggers said.

In the midst of blossoming cannabis and CBD reform throughout the West, hemp-derived cannabinoid products are increasingly taking center stage as legislators continue to raise red flags surrounding the lack of regulation and intoxicating potential of these products.

Just in the past several months, a number of states have moved to introduce new policies to limit or ban the sale of psychoactive hemp-derived cannabinoid products, like delta-8 THC. Similarly, many are calling out some of the issues surrounding the regulatory gaps surrounding hemp-derived products in the market.

Among them is CBD Oracle, a consumer research company aiming to improve safety and transparency surrounding cannabis products. 

Most recently, it turned its attention to CBD gummies and other hemp products available for purchase on Amazon.com. While the company notes that Amazon will “tell you confidently” that they do not allow CBD gummies on the platform, CBD Oracle’s new independent analysis on such products begs to differ.

A Look at Amazon’s Approach to Hemp and CBD Products

While Amazon doesn’t technically allow CBD products, CBD Oracle suggests that sellers on the site largely get around this obstacle by avoiding the term “CBD” and instead using “hemp” on packaging and in product descriptions. 

Neurogan CEO Jan Brandup said that Amazon’s “hemp products” are not related to actual hemp and rather use the term as a sales tactic.

“It’s alarming how easily consumers are deceived into trusting these products, just because they are sold on a reputable platform like Amazon,” Brandup said. “The best case is they may drain your wallet.”

Sunday Scaries CEO Mike Sill agreed, adding that many of the products on Amazon automatically lack credibility and ultimately quality due to the nature of the platform’s regulations.

“When you search for ‘CBD gummies’ on the platform, no reputable brands populate in your search results,” Sill said. “The reason for this is that credible brands like Sunday Scaries, Charlotte’s Web and cbdMD are not allowed to sell on Amazon without being banned.”

Rather, Sill said these companies engage in “brand burning,” meaning that once they are banned from Amazon, they essentially rebrand with a new name and packaging only to reupload the same products to the site and continue sales.

“Their business model doesn’t include a focus on building a reputable brand and providing the highest quality and safest products to consumers; they are just looking for a quick sale and will do whatever is necessary to stay ‘live’ on Amazon,” Sill said.

So what exactly do Amazon “hemp” products contain?

Investigating the Contents of Amazon’s ‘Hemp’ Products

In an effort to analyze the specific contents of CBD products on Amazon, the company purchased 56 of the most popular hemp products on the site and tested them through InfiniteCAL Labs. Most of the products (80%) were gummies, with eight tinctures, two topical creams and one pack of mints. A majority (89%) also made specific numerical claims regarding dosage.

Around 30% (17 of 56) of the products tested contained CBD, averaging 547 mg per package. However, there was a large variance in CBD quantity between products, with a minimum of 28 mg of CBD and a maximum of 1,582 mg. While CBD Oracle notes that this at least shows Amazon isn’t being totally dishonest about some of these products containing hemp and hemp compounds, it still violates Amazon’s policies and may not be legally compliant.

THC is also banned from Amazon sales, though six (11%) of the tested products contained the cannabinoid with the three containing the most comprised primarily of delta-8 THC. While all of the products were under the THC threshold set by the 2018 Farm Bill, the three delta-8 products “had very high quantities of THC” with 641, 2,507 and 3,028 mg per pack. The product with the highest amount of THC had 76 mg per gummy.

The majority of tested products (35 of 56 products, or 62.5%) contained no cannabinoids at all with more than a third (24 of 56 products, or 43%) containing no hemp.

InfiniteCAL Lab Manager Dr. Erik Paulson explains that hemp is typically infused into consumable products through hemp seeds, which contain no cannabinoids, or through extractable material pulled out of leaves, stems or buds — generally to create cannabinoid-infused products.

“Simply put, if you buy ‘hemp’ from Amazon it is likely that you will actually be buying an expensive jar of gummy bears. Gelatin and sugar, priced at a premium,” CBD Oracle notes in the report.

The report also confirmed that a whopping 96% of tested products did not advertise an accurate dosage.

“If we assume the dosage listing refers to cannabinoids (and not just the total mass of hempseed oil), just two products were confirmed by lab testing to have a dosage within 10% of that listed on their labels,” the report states. “They contained an average of just 25% of the advertised dosage. In most cases, this was less than advertised, but one product primarily containing delta-8 THC had twice the promised dosage.”

In addition, 52% of the products appeared to make an unapproved medical claim, and almost 95% of products did not provide Certificates of Analysis (COA), typically considered an essential for reputable companies selling hemp products.

A Growing Issue and Potential Solutions

While the report focused on Amazon products, CBD Oracle notes the prevalence of this trend, as other companies like eBay, Walmart and Alibaba carry similar products — sometimes the exact same options.

Authors note the potential ramifications of selling these products, beyond safety and health concerns, in that it could undermine the broader hemp and cannabis industries and the reform progress so many are actively pushing for.

“Amazon has demonstrated that they don’t understand the difference between hemp seed oil and hemp extract that contains cannabinoids,” said Forge Hemp’s Kelly Lombard. “As long as sellers are vague about a product’s contents, Amazon doesn’t seem to care. This is problematic because U.S. consumers need more information about hemp and CBD, not less. Amazon’s convenience and return policy may entice more consumers to try hemp products, but if their experience is negative, that hurts the industry.”

CBD Oracle also lists some potential solutions to remedy these issues, though they largely fall on Amazon to either adhere to more strict verification and COA guidelines, if not completely remove any products making false claims. They note that customers tend to have limited impact and that individual efforts to combat or report these products may ultimately result in frustration and wasted time. 

Authors also cite that the current model, a blanket ban on CBD encouraging companies to be dishonest and actively work around it, may not be the answer.

“Even establishing a bare minimum requirement for hemp sellers — showing an up-to-date lab report — would be enough to send the snake oil sellers running for the hills,” the report concludes. “Will you be able to pretend that CBD isn’t available on your platform? No. But customers who are buying CBD on your platform — who already exist, like it or not — would be much, much more likely to get safe products that offer what they say on the label.”

Yet another state is cracking down on hemp-derived products, some of which have intoxicating effects, and South Carolina’s approach to food products that contain hemp is among the most extreme.

The South Carolina Department of Health and Environmental Control (DHEC) issued a warning in a letter dated Jan. 22, banning the manufacture, distribution, and sale of food and beverage products containing hemp-derived products as ingredients in the state’s marketplace.

While CBD products can easily be found in most states thanks to a lack of clarity in federal regulations, the U.S. Food & Drug Administration (FDA) has repeatedly warned that products containing CBD are illegal under the Federal Food, Drug, and Cosmetic Act. 

The FDA routinely issues warnings that adding CBD to a food means those products are adulterated, or against products with any sort of medical claims, but the agency has delayed finalizing rules.

“Therefore, the following hemp products are NOT APPROVED to be added to food or beverage products,” the letter reads. 

• Viable, non-sterilized hemp seeds, raw hemp leaves, and raw microgreens, and any other raw, unprocessed form of hemp biomass as they are considered “plant material” and may not be possessed without a Grower or Processor License 
• Pure CBD Isolate 
• Delta-8 THC, Delta-9 THC, or Delta-10 THC 
• THC-0 or any other derivative 
• “Full spectrum” whole-plant extract (i.e. “full spectrum hemp oil/extract” from biomass) if it includes health claims, or bears any sort of declaration of THC or CBD 
• Any hemp product that is NOT manufactured in a food-grade establishment inspected under GMP or cGMP regulations. 
• Any hemp or hemp-derived product that promotes its medical or health benefits

The only exceptions are basically hemp seed derivatives. “The FDA evaluated three Generally Recognized As Safe (GRAS) notices for hemp products and found that the use of such products as described in the notices is safe. Therefore, the following hemp products may be legally marketed in human foods and are APPROVED to be used as ingredients in food and beverage products,” the letter continues.

“While DHEC’s goal is to educate while we regulate this growing niche of manufacturers and distributors of foods and beverages containing hemp-derived products as ingredients, our obligation under the requirements of both federal and state law is to remove from commerce all food and beverage products containing non-conforming hemp-derived products as ingredients,” Sandra Craig, Director of the DEHC’s Division of Food and Lead Risk Assessments, said in a letter announcing the bans.

Sellers can use full-spectrum whole-plant extract as an ingredient in food and beverage products if and only if the hemp-derived ingredient meets the following requirements: 

• A “full spectrum” hemp oil or extract from biomass contains the naturally occurring ratios and array of phytonutrients found in hemp. 
• Using a full spectrum hemp oil as an ingredient must be referred to in the ingredients list on the food or beverage label as “Full Spectrum Hemp Oil” or “Full Spectrum Hemp Extract.” The label may not contain health claims and may not bear any sort of declaration of “THC”, “CBD”, or “Delta-9” products or isolates. 
• When companies in South Carolina receive their “full spectrum hemp oil/extract” from their approved supplier, it must contain no more than 0.3% Delta-9 THC, as evidenced by Certificates of Analysis (COAs). The use of concentrates or “work in progress hemp oil from biomass” containing more than 0.3% Delta-9 THC, is illegal. Companies may NOT use “crude” hemp-derived oil, “work in progress” hemp oils over 0.3% Delta-9 THC, non-food grade oils, or dilute hemp oils containing an illegal amount of THC (> 0.3%) to a “legal” level. Hemp products containing more than the legal limit of THC are no longer considered to be hemp but are a Schedule I Drug. Hemp products that contain more than 0.3% THC are NOT ALLOWED to be possessed by anyone in South Carolina, and they are NOT ALLOWED to be introduced into foods or beverages.

The letter also bans any mention of THC, dosages, and several other restrictions. The letter also reminds hemp sellers that only intrastate hemp product sales are allowed.

But they’re not only going after hemp-derived cannabinoid products that are synthetically derived from hemp biomass, and known for psychoactive effects—i.e. delta-8 THC, THC-O, etc.—they’re going after products with CBD, hemp leaves, plant material and more as well. Delta-8 THC only appears in nature in minute amounts, and intoxicating amounts have to be re-added to hemp via a refluxing process in a lab. This is why states are opting to either crack down on it or regulate it like marijuana. The 2018 Farm Bill opened a legal loophole, accidentally legalizing these ingredients. Delta-8 THC products seeped into the medical markets in some states.

At least a dozen other states are actively pursuing solutions to ban hemp-derived products in one form or another.

An Iowa legislative panel this week approved a bill that sets limits on consumable hemp products sold in the state. The measure, House Study Bill 665, was approved on Wednesday by the House Public Safety Subcommittee by a vote of 2-0. 

The bill, which was submitted to the state legislature by the Iowa Department of Public Safety (DPS), gives the state Department of Health and Human Services (HHS) the authority to regulate consumable hemp products. Under the measure, HHS can set cannabinoid potency limits on hemp products and set rules for their distribution and sale. The legislation also limits sales of consumable hemp products to adults aged 21 and older and sets criminal penalties for those who sell or give such products to minors.

Hemp products were legalized federally by the 2018 Farm Bill, followed by the legalization of the crop in 2019 by the Iowa Hemp Act. But neither law sets quality standards for consumable hemp products or includes provisions to regulate their production, distribution and sale.

The lack of regulation has led to a nationwide proliferation of hemp-derived products with intoxicating cannabinoids including Delta 8 and Delta 9 THC, among others. In Iowa, state lawmakers say they thought that such products were prohibited by the Farm Bill and the Iowa Hemp Act.

“We thought we were dealing with the intoxicating aspect, only to find out that there are ways to get around that,” Rep. Steve Holt told The Gazette. “So it’s sort of the wild, wild west out there in a lot of ways, with THC-infused drinks being able to be served to minors, a lot of other things going on that are not acceptable.”

Josie Wagler, the Department of Public Safety’s legislative liaison, said that the wide availability of intoxicating hemp products in Iowa made it necessary for the department to develop a regulatory proposal.

“We’ve seen an emergence of high potency, high-THC products hit the market,” Wagler said. “And coupled with that, there are no age restrictions for purchasing these products. So really the purpose is to get at that, and to give HHS and law enforcement some additional tools to help regulate these highly intoxicating products.”

The bill is supported by mental health advocates including Leslie Carpenter, the co-founder of Iowa Mental Health Advocacy, who told lawmakers that high-potency THC products pose the risk of serious mental consequences such as psychosis, especially when they are used by young people.

“I fully support medical marijuana,” Carpenter said during a House subcommittee hearing on Wednesday, according to a report from Radio Iowa. “It’s the high potency THC products and that currently a child can walk into a store and purchase them that makes me very concerned.”

Business Owners Oppose Legislation

Business owners in Iowa’s hemp industry oppose House Study Bill 665, saying the legislation goes too far. Scott Booher, the operator of Four Winds Farms, said that his business grows hemp for CBD and CBG, a cannabinoid that many people use to help with chronic pain, anxiety and sleep. He said he has many customers who buy these products for their children, but the bill advanced on Wednesday would make such use a criminal offense.

“Let’s look at what needs to be taken care of instead of just sweeping everybody under the rug,” Booher told lawmakers at the hearing. “We have patients that are kids, we have parents that buy our hemp products for their children. For ADD, for behavioral problems.”

Licensed hemp grower Tyson Allchin called out legislators for changing the standards regulating hemp and medical marijuana production. He believes he is the first Iowa grower to produce a hemp product that meets the standards for human consumption.

“My flower was packaged and labeled as a food-grade ingredient, lessons on infusion and extraction for personal use had been planned out and promoted, and HHS approved it on January 31,” Allchin told Iowa Capitol Dispatch. 

“And six days later, this bill attempts to ban it. I’ve exceeded state requirements, requirements which exceed federal guidelines,” Allchin added. “I’ve done everything required of me, and the state (is) continuously changing my goal. How can small farms ever get established when the state keeps moving our goal line?”

Booher said that he agrees that some hemp producers are selling intoxicating products that are not in line with the spirit of hemp legalization laws. But the bill advanced by lawmakers on Wednesday conflates businesses like his that produce non-psychoactive products with bad actors in the industry.

“Some of these people who are creating high THC products need to be held accountable in a different way,” Booher said, “maybe not with people who have low THC products.”

Representative Phil Thompson said he appreciates that many people are “willing to admit there are bad actors” and that he understands the frustration of business owners who are following the rules in place.

“But this is an important conversation to advance,” Thompson said. “I appreciate DPS on working on this and bring forth some guidelines on regulating this.”

The legislation has now been referred to the full House Committee on Public Safety for further consideration.

The Department of Justice has rescinded a DEA decision to fire a special agent who was let go due to a positive reading for CBD on a drug test.

DEA special agent Anthony L. Armour will be re-hired as a special agent and be reimbursed for back pay and legal expenses after a years-long court battle that stretches back to 2019 when a routine drug test showed he had been using CBD, which Armour maintained in court was for the purpose of treating chronic pain in lieu of highly-addictive opioid based painkillers.

“I’m excited to be getting back to work at DEA,” Armour said to The New York Times. “I hope to finish my career at DEA by helping its mission in taking dangerous drugs like fentanyl off the streets.”

Armour’s battle with chronic pain goes back to an injury he sustained during his college football career. He was also injured on the job as a DEA agent in a car crash during a surveillance operation, after which he suffered from back pain and a sprained neck. He ordered CBD products and a vaporizer from the internet, under the impression that he was not taking any illegal risks as the 2018 Farm Bill federally legalized hemp products. 

“For Armour and many others in this country, this change meant new opportunities—particularly as to CBD, a non-THC cannabinoid in the cannabis plant,” a portion of the lawsuit said. “Armour hoped CBD oils could play a role in his pain management. That he did is unsurprising. From Martha Stewart to Wrigley Field, CBD has become embedded in American culture.”

After he failed the drug test, Agent Armour turned the CBD products he had ordered into his superiors. Under federal law, hemp-derived products are defined as such if they contain less than 0.3% THC (please follow these handy-dandy little hyperlinks if you want more information on the clusterfuck of loopholes the Farm Bill created with regard to hemp-derived cannabis products). Of the three different hemp-based products Agent Armour turned in, court documents showed that two of them tested within the 0.3% THC range but one of them tested above the allowed threshold at 0.35%, which could be due to the notoriously unreliable potencies of hemp products and the methods by which they are tested.

The DEA even went so far as to double down on their decision years into the lawsuit in late August of 2023. They filed a court brief defending Agent Armour’s termination just days before the Department of Health and Human Services officially recommended the federal rescheduling of cannabis from Schedule 1 to Schedule 3. The DEA also issued an official notice to all DEA employees after Armour’s termination to avoid all CBD products despite their federally legal status.

“Mr. Armour was an outstanding DEA agent when he took a chance in 2019. He believed it was unlikely that CBD products would cause him to test positive for marijuana, but he knew it was possible, and he bought those unregulated products on the internet and consumed them anyway,” the DEA brief said. “Mr. Armour argues that he ‘displayed negligence or poor decision-making,’ and DEA properly held him accountable for his poor decisions when they resulted in a verified positive drug test. DEA lost trust in Mr. Armour and properly removed him.”

Despite a years-long fight to keep Agent Armour off the payroll the DEA has agreed to reinstate him and pay him $470,000 in back pay and legal fees, according to the New York Times who obtained a copy of the court filings from earlier this month. Agent Armour told the New York Times he still sees value in using CBD for pain management but that he will consult a medical professional for viable alternatives upon his return to work. 

“Federal drug testing policies—and importantly, attitudes about drug testing—have not caught up with the times. I’m not the only career law enforcement officer in this country with chronic pain, nor am I the only law enforcement officer that has turned to legal cannabis products to address pain,” Agent Armour said in court testimony in September. “Nobody should have to choose between suffering pain and serving our country.”